Tech Diplomacy Now: The Battle of Investment Restrictions and Export Controls
Over the past two years, the United States and China have escalated their technology battle with tighter investment restrictions and export controls.
TABLE OF CONTENTS
Tech Diplomacy Updates
Top News of the Week
Latest News
Technology Strategy and Policy
Artificial Intelligence
Telecommunications Networks and Infrastructure
Critical Minerals
Synthetic Biology
Quantum
Advanced Aerospace Technology
Semiconductors and Microelectronics
Energy and Climate
Opinion and Commentary
The Last Word
Keith Krach to CommonWealth Magazine: The U.S. is committed to promoting Taiwan’s international standing
Keith Krach, Chairman of the Krach Institute for Tech Diplomacy at Purdue, sat down with CommonWealth Magazine for a wide-ranging interview covering the strategic U.S.-Taiwan partnership, the intersection of tech and national security, and the growth of the trusted tech movement.
ANNOUNCEMENT: Krach Institute Names Michelle Powers Keegan as Chief Revenue Officer
We have expanded our leadership team with the appointment of Michelle Powers Keegan as Chief Revenue Officer. With over two decades of experience leading nonprofit revenue generation, fundraising and strategic partnerships, she brings an impressive record of driving exponential growth, raising more than $350 million over the course of her career. As CRO, Keegan will be instrumental in helping the Krach Institute maximize our impact advancing freedom through trusted technology.
Top News of the Week – The Battle of Investment Restrictions and Export Controls
Over the past two years, the United States and the People’s Republic of China have escalated their technology battle with tighter investment restrictions and export controls. While Washington has concentrated on cutting off access to the cutting edge of semiconductors, artificial intelligence and quantum computing, Beijing has responded with its own restrictions on critical raw materials and manufacturing processes, as well as efforts to dump legacy semiconductors onto global markets to drive down the profitability of American, Japanese, Taiwanese and Korean firms.
Key Points:
The October 2022 export controls on advanced chips by the United States started the latest cycle of escalation. It took a year for the United States to close the most obvious loopholes that the PRC exploited, and it has been over a year since that action and it appears clear the PRC has made further adjustments.
In the summer of 2023, Beijing began rolling out restrictions on critical minerals and other processed materials that the United States and other countries are dependent on. This action to restrict the export of commodities like gallium, graphene, and germanium seems likely to fail, since the PRC’s dominance of these commodities depends on artificially low prices maintained through subsidies, not a technological advantage.
This week, the White House and U.S. Treasury Department released final regulations which restricts U.S. persons and companies from making investments in or transferring knowledge to “Countries of Concern” in the areas of advanced semiconductors, quantum information technologies, and certain artificial intelligence systems.
More on Background:
FACT SHEET: Addressing U.S. Investments in Certain National Security Technologies and Products in Countries of Concern – White House, October 28, 2024
Additional Information on Final Regulations Implementing Outbound Investment Executive Order (E.O. 14105) – U.S. Treasury Department, October 28, 2024
Fab Whack-A-Mole: Chinese Companies are Evading U.S. Sanctions – Semianalysis, October 28, 2024
China Tightens Its Hold on Minerals Needed to Make Computer Chips – NYTs, October 26, 2024
Sanctions by the Numbers: Comparing the Trump and Biden Administrations’ Sanctions and Export Controls on China – CNAS, October 23, 2024
US-China tech war seen heating up regardless of whether Trump or Harris wins – Reuters, October 23, 2024
China boosts export controls on dual use items, state media says – Reuters, October 19, 2024
How Sanctions Propel Huawei's Rise as China’s Tech Leader – Commonwealth Magazine, October 16, 2024
Latest News
What to Know About the Chinese Hackers Who Targeted the 2024 Campaigns – NYTs, October 26, 2024
Chinese Hackers Are Said to Have Targeted Phones Used by Trump and Vance – NYTs, October 25, 2024
Russia Provided Targeting Data for Houthi Assault on Global Shipping – WSJ, October 24, 2024
Crossing the Rubicon: DPRK Sends Troops to Russia – CSIS, October 23, 2024
Russia, Iran, China aim to divide Americans before Nov. 5 elections, US spy official says – Reuters, October 22, 2024
Putin Brings Together Economies He Hopes Will Eclipse the West – NYTs, October 21, 2024
Technology Strategy and Policy
The Emerging Age of AI Diplomacy: To Compete with China, the United States Must Walk a Tightrope in the Gulf – Foreign Policy, October 28, 2024
Department of Justice Issues Notice of Proposed Rulemaking to Regulate Export of Sensitive Personal Data – Myer, Brown, October 24, 2024
Systemic Impacts of Geoeconomic and Economic Coercion: How Should States Respond? – RSIS, October 23, 2024
US unveils new rules to block China, Russia and Iran from accessing bulk US data – Reuters, October 21, 2024
Artificial Intelligence
US finalizes rules to curb AI investments in China, impose other restrictions – Reuters, October 28, 2024
Hong Kong Unveils AI Policy for Finance, Floats Tax Breaks for Crypto – Bloomberg, October 27, 2024
Biden Administration Outlines Government ‘Guardrails’ for A.I. Tools – NYTs, October 24, 2024
Memorandum on Advancing the United States’ Leadership in Artificial Intelligence; Harnessing Artificial Intelligence to Fulfill National Security Objectives; and Fostering the Safety, Security, and Trustworthiness of Artificial Intelligence – White House, October 24, 2024
Microsoft closes Azure subscription for individuals to access OpenAI in mainland China – SCMP, October 21, 2024
Chinese AI groups get creative to drive down cost of models – Financial Times, October 21, 2024
Telecommunications Networks and Infrastructure
Meg Whitman’s Mission in Africa: American Tech Over Chinese – Bloomberg, October 28, 2024
Senators seek Biden administration review of undersea cable vulnerabilities – Reuters, October 21, 2024
China Employs Hackers and Celebrities to Undermine Taiwan – WSJ, October 17, 2024
Apple is losing to Huawei in China. Here's why – Quartz, October 16, 2024
Critical Minerals
How Beijing Tamed a Lawless Industry and Gained Global Influence – NYTs, October 28, 2024
U.S.-China race for lithium leads to controversial new mine – Nikkei Asia, October 27, 2024
How the U.S. Is Trying to Challenge China’s Cobalt Chokehold – WSJ, October 15, 2024
Why you should worry about gallium – Spectator, October 6, 2024
Synthetic Biology
Mitigating Risks from Gene Editing and Synthetic Biology: Global Governance Priorities – Carnegie Endowment, October 16, 2024
Synthetic biology: how to screen for DNA danger now and for the future – WEF, October 4, 2024
Synthetic biology, once hailed as a moneymaker, meets tough times – Science, August 22, 2024
Quantum
UK’s Newly Opened National Quantum Computing Centre Designed to Push the Boundaries of What is Possible with Quantum – Quantum Insider, October 26, 2024
Does a talent crisis threaten China’s quantum ambitions? One Chinese expert thinks so – SCMP, October 24, 2024
Quantum Computing – An Update – Steve Blank, October 22, 2024
Dutch Government Unveils Measure That Curbs Exports of Quantum Technology – Bloomberg, October 18, 2024
Advanced Aerospace Technology
Chinese plane designed to travel twice as fast as Concorde completes test flight – SCMP, October 28, 2024
China building ‘counter-stealth’ radar on disputed South China Sea reef, satellite pictures suggest – The Guardian, October 25, 2024
Drone maker DJI sues Pentagon over Chinese military listing – Reuters, October 21, 2024
Semiconductors and Microelectronics
TSMC suspended shipments to China firm after chip found on Huawei processor, sources say – Reuters, October 27, 2024
TSMC Faces Severe Challenges as Free Trade Falters, Founder Says – Bloomberg, October 26, 2024
TSMC’s Arizona Chip Production Yields Surpass Taiwan’s in Win for US Push – Bloomberg, October 24, 2024
TSMC says it has alerted US of potential China AI chip curbs violation – Reuters, October 22, 2024
ASML expects growth in 2026, US-China row to continue, CEO says – Reuters, October 22, 2024
Threat of Chinese Overcapacity Looms Over Memory Chips – WSJ, October 21, 2024
Samsung delays taking deliveries of ASML chip gear for its new US factory, sources say – Reuters, October 18, 2024
Energy and Climate
How a Trump Victory Would Threaten Tesla’s Success in China – WSJ, October 26, 2024
Europe Should Emulate Biden’s Restrictions on Chinese Smart Cars – CFR, October 22, 2024
Forvia secures deal to supply BYD's second European factory in Turkey – Reuters, October 21, 2024
Energy Security and the U.S.-Philippine Alliance – CSIS, October 21, 2024
Amazon goes nuclear, to invest more than $500 million to develop small modular reactors – CNBC, October 16, 2024
Opinion and Commentary
North Korean troops in Russia bring a ‘World-Island’ conflict a step closer – Nicholas Eberstadt, WaPo, October 27, 2024
No, China Isn’t a Decade Ahead of The U.S. in Quantum Computing (Probably) – Matt Swayne, Quantum Insider, October 24, 2024
War Is Coming. Will Our Next President Be Ready? – Frederick Kempe, The Atlantic, October 22, 2024
Beijing’s sanctions dilemma: Chinese narratives on economic coercion – Gloria Xiong, Brookings, October 21, 2024
How the United States Can Win the Battery Race – Varum Sivaram and Noah Gordon, Foreign Policy, October 21, 2024
China and North Korea boost Russian military ties to uncharted levels – Hiroyuki Akita, Nikkei Asia, October 19, 2024
The Last Word
“A resilient supply chain is built on ‘Four Ts’: Technology, Talent, Training, and Trust.”
Keith Krach, Chairman of the Krach Institute for Tech Diplomacy at Purdue
About: Tech Diplomacy Now
The Krach Institute for Tech Diplomacy at Purdue is the world’s preeminent trusted technology accelerator. As the leader of the new category of Tech Diplomacy, the Institute integrates technology expertise, Silicon Valley strategies, and foreign policy tools to build the Global Trusted Tech Network of governments, companies, organizations and individuals to accelerate the innovation and adoption of trusted technology and ensure technology advances freedom.